Brussels Edition: Denmark hugs EU tight

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Welcome to the weekend issue of Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Join us on Saturdays for deeper dives from our bureaus across Europe.

When US President Donald Trump floated the idea of taking over Greenland, it jolted Denmark into a rare moment of geopolitical prominence.

Against this backdrop, the small Nordic nation assumed the rotating six-month EU presidency this week. The message from Danish Prime Minister Mette Frederiksen was clear: Europe needs to step up defense to protect its borders at a time when it's facing conflicts on many fronts.

Set in charming Aarhus, Denmark's second-largest city, the official kick-off of the EU presidency was branded as a celebration, with street parties, concerts, impro comedy and poetry slam. There was even a reception on Dannebrog, the Royal Yacht, with King Frederik X and Queen Mary. 

But a different, more somber mood overshadowed the event, when Ukrainian President Volodymyr Zelenskiy suddenly landed at Aarhus Airport in the morning.

Mette Frederiksen, Denmark's prime minister, at the European Political Community summit in May. Photographer: Atdhe Mulla/Bloomberg

The message could not be clearer. Zelenskiy was invited to set the tone for the next six months and hammer home to fellow EU leaders that Ukraine's and Europe's future security are inextricably linked –  preferably with Ukraine ultimately becoming a member of the European Union, according to Frederiksen. 

The Danish leader, who has been prime minister since 2022, said that it's only by standing together in this "age of predators" that Europe and Ukraine can avoid ending up as prey, as she stood alongside Zelenskiy and European Council President Antonio Costa and European Commission President Ursula von der Leyen in the summer sun.

The silver-lining of the current geo-political moment for Brussels is that it appears to be fueling pro-European sentiment in some corners of the EU, including Denmark.

Famous for its opt-outs from the EU rulebook, its frugality toward the common budget and  its skepticism towards the European project, now the Nordic country is supportive of EU common defense, and open to discuss a bigger joint budget — if better spent. Support for the EU among Danes is now at a record high

"We see the new political winds from the US," Marie Bjerre, the country's minister for EU Affairs told reporters. "We did not like to see how President Zelenskiy was treated in the White House and we do not like to be threatened with tariffs and trade wars from our best friends and allies."

With war on the continent and trust in old allies shaken, officials in Copenhagen now embark on a six-month task to prove that Europe must stand together — or risk becoming the next target.

_ Sara Sjolin, Copenhagen Bureau Chief and Jorge Valero, EU Reporter

Weekend Reads

Greece's Painful Decade of Rehabilitation Rewards the Believers

Shoppers in Ermou Street in Athens, Greece, earlier this year. Photographer: Hilary Swift/Bloomberg

In the summer of 2015, Greece stood on the economic precipice. For many Greeks — pensioners, unemployed youth, small business owners — the scars persist in a country that was on its knees. But for the believers, the transformation of an economic outcast into a poster child for financial prudence is yielding rewards that market metrics suggest should continue.

Sweden's Arctic Railway Prepares for a More Militarized Future

For nearly 150 years, trains run by Swedish mining giant LKAB have hauled iron ore, the main component in steel, across the barren, mountainous landscape of Sweden's far north. But now Sweden's arctic railway is preparing for a more militarized future in case of conflict with Russia. 

Train cars along the Malmbanan Iron Ore line in Boden, Sweden. Photographer: Erika Gerdemark/Bloomberg

European Markets Are Becoming Increasingly Difficult to Ignore

European stocks outperformed their US peers by the biggest margin on record in the first six months of the year. The rebound isn't confined to stocks: the euro is up 13% against the dollar in the six months through June. Investors globally are slowing their purchases of US assets and shifting more money to Europe.

Budapest Pride Turns Into Mass Act of Defiance Against Orban

Hundreds of thousands of people marched through Budapest for the city's Pride parade last weekend in one of the biggest displays of public defiance in Hungary during Prime Minister Viktor Orban's 15-year rule. "In Europe, marching for your rights is a fundamental freedom," European Commission President Ursula von der Leyen said, the latest sign of tensions between Brussels and Budapest. 

This Week in Europe

  • Monday and Tuesday: European finance ministers meet in Brussels
  • Monday-Thursday: European Parliament plenary session in Strasbourg
  • Thursday and Friday: Ukraine Recovery Conference in Rome

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